Blowout US jobs hit Fed cut bets, but not stock appetite! | MarketTalk: What’s up today?| Swissquote

Friday’s abnormally strong jobs data resonated like a bomb across the financial markets. The US economy added 353’000 nonfarm jobs last month versus the consensus of around 185’000 new job additions. The average wage growth unexpectedly accelerated to 4.5%, and the unemployment rate remained steady at 3.7%. As such, a March rate cut from the Fed looks like a pipe dream. Activity on Fed funds futures now gives less than 20% chance for a rate cut to happen in March. And the probability of a May cut has fallen to around 70%, whereas the market was pricing a May cut near almost 100% before the jobs data. The dramatic jobs number of Friday met a dramatic reaction from the bond markets. The US yields jumped and the dollar rallied. Interestingly — and happily, the jump in the US yiel